Alexander J. Douglas, Esq. | Attorney | (585) 568-2224 |

Student Loan FAQ

70% of college students graduate with a significant amount of student loan debt. Over 44 million Americans collectively hold nearly $1.5 trillion in student debt, with the average student loan borrower having $37,172 of debt.

Navigating your way through all of the red-tape involved with your student debt can be difficult on your own. Here are some common questions that I am asked about student debt.
If you are in need of assistance in your student load debt contact me today!

Can I discharge my student loans in bankruptcy?
It is very, very difficult to discharge a student loan in bankruptcy. The debtor needs to show that payment of the debt will impose an “undue hardship.” Courts rarely find that a debtor’s financial situation is so dire that the student loan should be discharged.
 I’m pretty behind on payments. Are they going to sue me?
Depends on the type of loan. If you have a private loan, your lender might sue you. To reach your assets, the private lender must file a lawsuit and obtain a judgment.

If you have a federally insured student loan, the lender doesn’t need to sue you. The federal government has the authority to garnish your tax returns and your wages without filing a lawsuit and obtaining a judgment.

They’ve already sued me. What happens now?
You need to immediately obtain a defense attorney and fight the lawsuit. If the lender sues you and wins a judgment, then things can get worse.
What do you mean by “worse”? What happens if they get a judgment?
Once somebody has a judgment against you, they can restrain (a.k.a. “freeze”) your bank account so that you can’t take any money out of it.

After that, they can seize the bank account and use the funds to pay the judgment. Alternatively, the judgment-creditor will garnish your wages.

 Can they take my [social security / pension / disability benefits / etc.]?
Generally, no. There are several types of exempt income that a judgment creditor cannot take from you: SSI, social security, alimony, child support, public assistance, unemployment benefits, disability benefits, public or private pensions, and 90% of your wages or salary earned in the last 60 days.
Student Loan FAQ August 11, 2016


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Important: The information contained in this website has been provided for informational purposes and DOES NOT constitute legal advice; there is no warranty on this information and it does not in any way constitute a attorney-client relationship.

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